PETALING JAYA: The final decision on mandatory certification for all local oil palm planters under the Malaysian Sustainable Palm Oil (MSPO) standard is expected to be announced by end-February.
Mah: ‘We are looking at novel measures to help the smallholders to be MSPO-certified without burdening them.’
Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong said that he would be meeting the stakeholders in the oil palm sector next month to discuss the relevance of such measure, especially for smallholders.
Taking the reality pill, Mah said the mandatory certification would be implemented across the board, if finalised.
“However, the certification process will not be easy and expensive for the oil palm smallholders to comply. Thus, we are looking at novel measures to help the smallholders to be MSPO-certified without burdening them.
“Perhaps, we can group the smallholders’ plantations in clusters to undergo certification without incurring much cost,” Mah told the reporters at the 19th Malaysia Strategic Outlook Conference 2017 yesterday.
A total of 40% or 550,000 of Malaysia’s oil palm plantation players are considered smallholders.
The MSPO certification enables local oil palm plantations to be certified and recognised for sustainable practices in oil palm cultivation.
MSPO is a testimony of Malaysia’s long-term commitment towards sustainable production of palm oil.
Asked on the recent decision of US president Donald Trump to withdraw from the yet-to-be ratified Trans Pacific Partnership (TPP) trade pact, Mah expressed disappointment over the move.
“With the US withdrawing from the trade deal, it will effectively jeopardise Malaysia’s forecast increase in oil palm exports to 11 countries under TPP. The ratification of TPP by the United States for example, would have eliminated the 95% of the tariff imposed on palm oil and palm oil-based products.
“If TPP is ratified by all negotiating countries, Malaysia’s oil palm exports would have increased to RM20bil by 2021,” he said, while adding that exports of palm oil products to TPP countries in 2014, was about RM13bil.
At present, the US imposes tariffs of up to 18% on imported palm oil and palm oil-based products.
Mah said the remaining TPP countries could look into initiating new bilateral trade agreements or to continue with the existing TPP deal without the United States.
Reuters reported that Australian prime minister Malcolm Turnbull has held discussions with his Japanese, New Zealand and Singaporean counterparts about the possibility of proceeding with the TPP without the United States.
“Losing the United States from the TPP is a big loss, there is no question about that.
“But we are not about to walk away. Certainly there is potential for China to join the TPP,” Turnbull told reporters in Canberra.
Mah also said that Malaysia would be exploring more opportunities in existing and new markets globally, for palm oil exports.
“The ministry will continue to look at other markets such as India and the African countries.
“India market for palm oil alone is as big as all the TPP countries put together, thus enabling Malaysia to look for greater market opportunities for the export of our domestic commodities,” added Mah.
India is the largest market, accounting for 2.83 million tonnes or 17.6% of total Malaysia palm oil exports in 2016, followed by European Union at 2.06 million tonnes and China at 1.88 million tonnes.
For 2017, the Government expects an increase of 5% to 8% for Malaysia’s palm oil exports. Last year, exports of palm oil products declined by 8.2% to 23.29 million tonnes year-on-year, mainly due to lower production.
(Taken from The Star)
